GCN.WA WACC - Weighted Average Cost of Capital

The WACC of Groclin SA (GCN.WA) is 12.0%.

The Cost of Equity of Groclin SA (GCN.WA) is 12.20%.

The Cost of Debt of Groclin SA (GCN.WA) is 5.00%.

	Range	Selected
Cost of equity	10.80% - 13.60%	12.20%
Tax rate	19.00% - 19.00%	19.00%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.6% - 13.4%	12.0%

WACC

GCN.WA WACC calculation

Category	Low	High

Long-term bond rate	5.6%	6.1%
Equity market risk premium	6.8%	7.8%
Adjusted beta	0.76	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.60%

Tax rate	19.00%	19.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.00%	5.00%

After-tax WACC	10.6%	13.4%


Selected WACC	12.0%

GCN.WA's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GCN.WA:

cost_of_equity (12.20%) = risk_free_rate (5.85%) + equity_risk_premium (7.30%) * adjusted_beta (0.76) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.